Q1 INTERIM REPORT - FUCHSFUCHS PETROLUB AG Q1 INTERIM REPORT FOR THE FIRST QUARTER OF 2011 Demand...
Transcript of Q1 INTERIM REPORT - FUCHSFUCHS PETROLUB AG Q1 INTERIM REPORT FOR THE FIRST QUARTER OF 2011 Demand...
FUCHS PETROLUB AG
Q1 INTERIM REPORT
FOR THE FIRST QUARTER OF 2011
Demand remains strong on a broad basis Signifi cant increases in the price of raw materials Profi t after tax increases to € 47.1 million
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THE FIRST QUARTER OF 2011 AT A GL ANCE
GROU P
amounts in € million 1 − 3 / 2011 1 − 3 / 2010
Sales revenues 1 409.0 330.4
Europe 249.8 203.6
Asia-Pacifi c, Africa 102.1 83.7
North and South America 68.9 53.4
Consolidation – 11.8 – 10.3
Earnings before interest and tax (EBIT) 67.6 58.7
Profi t after tax for the fi rst quarter 47.1 40.6
Gross cash fl ow 51.4 42.7
Capital expenditure 2 6.5 6.9
Employees (as at March 31) 3,622 3,496
1 By company location
2 In property, plant and equipment and intangible assets
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The fi rst quarter of 2011 at a glance
Letter to our shareholders
Group management report
Environment
Sales revenues
Development of sales revenues by region
Earnings
Net assets and fi nancial position
Capital expenditure and investments in companies
Statement of cash fl ows
Research and development
Employees
Opportunities and risks
Business transactions with related companies and persons
Outlook
The FUCHS shares
Financial report of the Group
Consolidated income statement
Statement of comprehensive income
Consolidated balance sheet
Statement of changes in shareholders´ equity
Statement of cash fl ows
Segments
Notes to the interim consolidated fi nancial statements
Financial calendar
Disclaimer
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CONTENTS
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LET TER TO OUR SHAREHOLDERS
DEAR SHAREHOLDERS ,
In the fi rst quarter of 2011, the FUCHS PETROLUB Group recorded a 16 % increase in profi t after tax to € 47 million. In a positive economic environment, the company achieved its highest ever quarterly sales revenues of € 409 million (+ 24 %). All three global regions contributed to the increase in sales revenues and earnings.
Our priorities are the focused expansion of our business and the defense of our gross margin. Our growth offensive is showing initial successes. The rates of increase in the North and South America region were once again noteworthy. The food grade lubricants business under the CASSIDA brand acquired in the fourth quarter of 2010 is showing promising development. We are attempting to counteract the pronounced increases in the costs of raw materials that we have been experiencing for several months through price increases.
Due to fi nancing of the signifi cant increase in sales revenues, free cash fl ow remained at the same level of the previous year in the fi rst quarter. With an equity ratio of 61 % and a liquidity surplus of € 81 million, we have a solid balance sheet. We were able to fi nance the growth in sales revenues, continue to invest in our infrastructure and are prepared for external growth opportunities and we are in a position to make the dividend payment of € 63 million scheduled for mid-May from our own funds.
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Stefan Fuchs, Chairman of the Executive Board
We anticipate increased sales revenues and profits in all regions for the entire year of 2011. However, this is subject to the global economy not being severely impacted by geopolitical tensions, the debt crisis in many countries, continuously increasing raw material costs and, most recently, the natural and nuclear disaster in Japan. We are striving to surpass the previous year’s high EBIT of € 250 million, but the earn-ings of the first quarter should not just be extrapolated over the entire year.
Stefan Fuchs Chairman of the Executive Board
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GROUP MANAGEMENT REPORT
ENVIRONM ENT
Despite the catastrophe in Japan and the political upheavals in the Arab world, the global economy is enjoying recovery in the early part of 2011, primarily due to dynamics in the emerging markets. According to the diagnosis of leading economic research institutes, the German economy also enjoyed a period of strong growth in the fi rst months of the year. The institutes anticipate that GDP will go up by 2.8 % in 2011.
According to data published by the World Steel Association, global steel production increased by 10 % in the fi rst two months of 2011 compared to the same period of the previous year. By March, crude steel production in Germany was 4 % above the fi rst quarter of 2010.
The German engineering sector has growing expectations for the year. Following a 40 % rise in orders received by February, the German Engineering Federation (VDMA) increased its production forecast for 2011 from 10 % to 14 %.
The expectation is that the catastrophe in Japan will have effects on the global automotive industry with its complex production structures, although industry experts agree that the extent of the effects are diffi cult to assess. However, the German Association of the Auto-motive Industry (VDA) does not expect permanent and serious setbacks for the supply chain of the car manufacturers operating in Germany. In the fi rst quarter of 2011, the German passenger car market recorded an 8 % increase in production, an 11 % increase in exports and a 14 % increase in new car registrations.
The German Chemical Industry Association (VCI) anticipates an increase in global chemicals production of 3 % for 2011. For the German chemical companies, the VCI is predicting an increase in both production and sales revenues of 2.5 % and 4 % respectively this year.
In the fi rst months of 2011, total demand for lubricants in the industrialized countries of France, Italy and Japan (the only countries for which information is already available) rose by around 4 %. We expect to see a considerable drop in volumes in the Japanese lubricant market, at least in the next two quarters. Yet despite this, from today’s perspective we expect global lubricant demand in 2011 to once again reach the pre-crisis level of 2008 at around 36 million tons.
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SALES REVENU ES
In light of a positive economic environment, the FUCHS PETROLUB Group was able to increase its sales in terms of volume and revenue in the fi rst quarter of 2011 over the same period of the previous year and over the quarters following that.
A total of € 409.0 million (330.4) was generated, which represents a 23.8 % rise relative to the same period of the previous year. This is the highest ever quarterly sales revenue recorded.
Summary of the factors affecting sales revenues:
DEVELOPM ENT OF SALES REVENU ES BY REGION
With organic growth in all regions of more than 20 %, together making up 21.8 % for the whole Group, the Group continued the dynamic development of previous quarters in the fi rst quarter of 2011.
The largest region, Europe, recorded € 41.5 million or 20.4 % more organic growth in sales revenues over the fi rst quarter of 2010. Besides this, the region also enjoyed slight external growth and minor positive currency exchange effects, which enabled sales revenues to rise by a total of € 46.2 million or 22.7 %. Overall, the region recorded sales revenues of € 249.8 million (203.6). The development of sales revenues was particularly pronounced in Eastern Europe.
D million %
Organic growth 72.1 21.8
External growth – 4.6 – 1.4
Currency translation effects 11.1 3.4
Growth in sales revenues 78.6 23.8
in Z million
First quarter of
2011
First quarter of
2010Organic growth
External growth
Exchange rate effects
Total change
absolute
Total change
in %
Europe 249.8 203.6 41.5 2.8 1.9 46.2 22.7
Asia-Pacifi c, Africa 102.1 83.7 19.1 – 8.1 7.4 18.4 22.0
North and South America 68.9 53.4 13.0 0.7 1.8 15.5 29.0
Consolidation – 11.8 – 10.3 – 1.5 – – – 1.5 –
Total 409.0 330.4 72.1 – 4.6 11.1 78.6 23.8
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Asia-Pacifi c, Africa enjoyed organic growth of 22.8 % or € 19.1 million. Companies in the Middle East which were previously consolidated on a pro rata basis and are now recognized using the at equity method had a negative external growth effect of € 8.1 million. This was almost completely compensated by positive currency exchange effects of € 7.4 million. In total, the region improved its sales revenues by 22.0 % or € 18.4 million to € 102.1 million (83.7). Disproportionately high increases in sales revenues were recorded by the companies in China, India, Korea and Turkey.
In North America, the pronounced increases in sales revenues of the previous quarters con-tinued. The entire region increased its sales revenues organically by 24.3 % or € 13.0 million. Incorporating external growth of 1.3 % and positive conversion effects of 3.4 %, sales reve-nues climbed to € 68.9 million (53.4). The total growth rate is therefore 29.0 %.
EARNINGS
The increase in sales revenues in the fi rst quarter of 2011 was demand-based and driven by the signifi cant rises in the costs of raw materials experienced since mid-2010. The cost of sales saw a disproportionately high increase of 28.8 % and at a level of 37.7 % (40.1 %) the gross margin was thus lower than in the same quarter of the previous year. However, it is also impor-tant to note that the gross margin was improved by deconsolidation activities. Adjusted by the effects brought about by the change of the accounting method used for our joint ven-ture holdings in the Middle East from being consolidated on a pro-rata basis to applying the at equity method, the gross margin of 37.2 % remained at around the same level as in the fourth quarter of 2010. Due in particular to the increased sales volumes and supported by the currency, gross profi t rose 16.4 % to € 154.2 million (132.5).
Beside the costs of selling and distribution, administration and research and development, there was also a volume and infl ation-based rise totaling 14.2 %. In addition, the effects from the acquisition of the food grade lubricants business under the CASSIDA brand can be felt here. Besides freight and commission payments, in particular personnel costs saw an increase. On the one hand this increase is attributable to a workforce employed by the Group that had been rising in numbers over the course of the previous year and on the other to global increases in wage and salary costs. After taking into account other operating income, earnings before interest, tax and income from participations of € 66.6 million remains (56.6). This represents € 10.0 million or 17.7 % more than in the fi rst quarter of 2010 and an increase of 16.3 % (17.1 %) relative to sales revenues.
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Income from participations increased from the start of the year due to the new accounting method used for joint venture holdings in the Middle East. However, this was offset by risk provisions put in place for these companies. At € 67.6 million (58.7), earnings before interest and tax (EBIT) saw a 15.2 % increase.
Taking into account the liquidity-based improvement to the fi nancial result (– € 0.8 million following – € 1.5 million in the previous year) and after income tax of € 19.7 million (16.6), earnings after taxes rose by 16.0 % to € 47.1 million (40.6).
All three regions increased their segment earnings. The strongest absolute and relative increase was recorded in North and South America. Here, segment earnings rose by 32.5 % to € 15.5 million (11.7) and the EBIT margin reached 22.5 % (21.9 %). In Europe, the rise was 9.8 % to € 34.8 million (31.7), while the EBIT margin was down at 13.9 % (15.6 %). Due to the risk provision put in place, segment earnings in the Asia-Pacifi c, Africa region rose by just 5.2 % to € 18.1 million (17.2), while the regional EBIT margin prior to income from participa-tions was 16.7 % (18.0 %).
Earnings per share were € 1.97 (1.70) per ordinary share and € 1.99 (1.72) per preference share.
NET ASSETS AND F INANCIAL POSIT ION
The Group continues to have a solid fi nancial basis. Shareholders’ equity increased to € 582.2 million (545.9 as at end of 2010). At 61.3 %, the equity ratio is at the same level as the end of 2010 (61.0 %).
Despite the revenue-based expansion of net working capital, net fi nancial assets increased to € 80.8 million in the fi rst quarter of 2011 (72.4 million as at December 31, 2010), which represents suffi cient funds for the dividend payment of € 63 million scheduled for mid-May.
C APITAL EXPENDITU RE AND INVESTM ENTS IN COM PANIES
The FUCHS PETROLUB Group made investments of € 6.5 million (6.9) in property, plant and equipment and intangible assets in the fi rst quarter of 2011. The focus of investment was on the new R & D center in Mannheim.
Depreciation and amortization of property, plant and equipment and intangible assets was € 6.9 million (5.1).
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STATEM ENT OF C ASH FLOWS
Gross cash fl ow in the fi rst quarter of 2011 was € 51.4 million (42.7). This fi gure includes depreciation and amortization of long-term assets of € 6.9 million (5.1).
Net operating working capital increased to € 39.5 million (24.9) as a result of the strong growth dynamics. The cash fl ow from operating activities was € 17.3 million (20.5) in the quarter under review.
After a cash fl ow from investing activities of € 5.0 million (6.8), the free cash fl ow amounted to € 12.3 million (13.7), of which € 2.5 million was used to pay off fi nancial liabilities and € 5.1 million was used to increase cash and cash equivalents. At the same time, cash and cash equivalents were reduced by € 6.0 million due to the change to at equity accounting at two holdings. Cash and cash equivalents in the Group totaled € 97.2 million on the balance sheet date (105.2 as at end of March 2010).
RESEARC H AND DEVELOPM ENT
Research and development activities at FUCHS, once again resulted in the launch of a range of new products to the market in the fi rst quarter of 2011. These will help our customers in optimizing their processes and reliably operating their equipment.
ANTICORIT DS 329 DE is a solvent-free corrosion protection wax for cavity preservation in car body construction that can be used at room temperature. It hardens under the infl uence of air and temperature, has optimized fl ow characteristics, can be used both in the workshop and serial production and offers excellent protection for steel and zinc surfaces, for example in car body construction. It was also recently awarded a laboratory release from one of the world’s largest automotive manufacturers.
With its RENOLIT WTF 2 B grease, FUCHS has developed a low-temperature and effi ciency-optimized high performance grease with excellent low-temperature behavior for electric gear motors and servo drives that is also used on “e-bikes”.
In the fi eld of metalworking oils, a modular cooling lubricant system has been launched, for example, consisting of ECOCOOL TOP and TOP HD. This is a microemulsion, made up of a basic and a high performance package. It allows the system, referred to as EMS, to be vari-ably adapted to the most diverse of requirements in processing all kinds of materials. One of its key advantages lies in its exemplary cost effi ciency through low consumption, as it can be easily metered in accordance with the required performance.
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Quenching oils represent an important fi eld of metalworking oils at FUCHS. The quenching process is a key step in material processing and requires a high degree of process expertise. With the introduction of THERMISOL QH 40 MC, a new product was developed which offers signifi cantly lower evaporation losses than conventional quenching oils.
In the demanding fi eld of railway lubricants, FUCHS worked in close cooperation with an equipment manufacturer and an English railway operator and was successfully awarded proof of suitability for its new fully synthetic TITAN CYTRAC RR SAE 75W-90 axle gear oil for long change intervals in train transmissions. This product complements the broad existing portfolio of FUCHS lubricants for rail vehicles.
EM PLOYEES
As at March 31, 2011, the global workforce of the FUCHS PETROLUB Group consisted of 3,622 employees. The number of employees at the start of the year (3,584) and in the same period of the previous year (3,496) includes those members of staff working at the com-panies in the Middle East consolidated on a pro rata basis (11 and 12 respectively). On an adjusted basis, the FUCHS PETROLUB Group therefore employed 49 persons more than at the start of the year.
The workforce at a glance:
March 31, 2011 Dec. 31, 2010 March 31, 2010
Europe 2,299 2,258 2,212
Asia-Pacifi c, Africa 810 824 791
North and South America 513 502 493
Total 3,622 3,584 3,496
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OPPORTUNIT IES AND R ISKS
In the fi nancial year 2010, FUCHS reported in detail on the opportunities and risks resulting from its international business activities. There have been no signifi cant changes since this time. On the basis of the information currently available, we are of the opinion that no signif-icant individual risks exist for the FUCHS PETROLUB Group, either now or in the foreseeable future. Nor do the overall risks or combinations of risks threaten the continued existence of the Group.
The FUCHS PETROLUB Group has implemented an adequate risk management system, which ensures that opportunities and risks are identifi ed and dealt with in good time. We have made all possible provision for typical business risks capable of having a major infl uence on the company’s asset, fi nancial and profi t situation.
BUSINESS TR ANSAC TIONS WITH REL ATED COM PANIES AND PERSONS
As at December 31, 2010, a report on the relationship to related companies (dependent com-pany report) was prepared pursuant to Section 312 of the German Stock Corporation Act (AktG) with the concluding declaration: “In the legal transactions listed in the dependent company report, and according to the circumstances that were known to us when those legal transactions were performed, our company received an appropriate consideration in each legal transaction. No actions subject to disclosure occurred on the instructions or in the interest of the controlling company.” KPMG AG Wirtschaftsprüfungsgesellschaft, Mannheim, the independent auditors of FUCHS PETROLUB AG, have audited this dependent company report and provided it with an unqualifi ed audit opinion.
Up to March 31, 2011, there were no indications which would lead us to revise our state-ment regarding business transactions with related companies and persons.
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OUTLOOK
Despite the natural and nuclear disaster in Japan and the political upheavals in North Africa and the Middle East, the global economy was relatively robust in the fi rst quarter of 2011. The dynamics originating from the emerging markets also led to further economic recovery in the developed countries. Thanks to its broad regional and sectoral positioning, the FUCHS PETROLUB Group was able to benefi t from this.
However, the worldwide economic recovery is once again being marred by signifi cant rises in raw material prices, some of which are associated with supply bottlenecks. The national debt crisis and the inherent risks for banks and other sectors of the European economy this involves, represent appreciable uncertainties for the global economy in the coming months.
Insofar as and as long as these risks do not materialize to an appreciable extent, the FUCHS PETROLUB Group anticipates year on year increases both in sales revenues and earnings in all three Group regions.
The signifi cant increase in the price of raw materials will keep pressure on the gross margin and the ongoing growth initiative will mean that costs will remain above the previous year’s level.
FUCHS is striving to surpass the previous year’s record EBIT of € 250.1 million. However, the earnings of the fi rst quarter should not simply be extrapolated over the entire year.
Investments in research and development, as well as in growth markets, will continue as scheduled, but the Group will also achieve a good level of free cash fl ow in 2011 in compari-son with recent years.
THE FUCHS SHARES
As expected, the peaks in both FUCHS share classes at the end of 2010 were followed by profi t-taking at the start of 2011. In addition to this, share price movements in the fi rst quar-ter were infl uenced by the earthquakes and nuclear disaster in Japan, as well as the tense situation in North Africa and the risks associated with this.
The FUCHS ordinary share closed at € 95.28 in XETRA trading on March 31, 2011, which was 3.5 % below the 2010 year end price. At a price of € 105.00, the preference share suffered a 5.3 % reduction. The DAX and MDAX each rose by 1.8 % in the same time period.
PR ICE TREND OF ORDINARY AND PREFERENCE SHARES IN COMPARISON WITH DA X AND MDA X
(JANUARY 1 – MARCH 31, 2011)
Rel %
108
106
104
102
100
98
96
94
92
90
88
86
84
January February March
Preference share Ordinary share DAX MDAX
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1515FINANCIAL REPORT OF THE GROUP
CONSOLIDATED INCOM E STATEM ENT
in Z millionFirst quarter
of 2011First quarter
of 2010
Sales revenues 409.0 330.4
Cost of sales – 254.8 – 197.9
Gross profi t 154.2 132.5
Selling and distribution expenses – 58.7 – 50.8
Administrative expenses – 20.9 – 18.7
Research and development expenses – 6.7 – 6.1
Other operating income and expenses – 1.3 – 0.3
EBIT before income from participations 66.6 56.6
Income from participations 1.0 2.1
Earnings before interest and tax (EBIT) 67.6 58.7
Financial result – 0.8 – 1.5
Earnings before tax (EBT) 66.8 57.2
Income taxes – 19.7 – 16.6
Profi t after tax 47.1 40.6
Profi t attributable to minority interest 0.3 0.2
Profi t attributable to equity holders of
FUCHS PETROLUB AG 46.8 40.4
Earnings per share in € 1
Ordinary share 1.97 1.70
Preference share 1.99 1.72
1 Basic and diluted in both cases.
STATEM ENT OF COM PREHENSIVE INCOM E
in Z million
First quarter of 2011
First quarter of 2010
Profi t after tax 47.1 40.6
Income and expense recognized in equity
Change in fair values of hedging instruments 0.0 0.0
Change in foreign currency translation adjustments
foreign subsidiaries – 11.5 12.3
investments accounted for using the equity method – 0.1 0.1
Actuarial gains / losses on defi ned benefi t pension commitments 1.7 0.0
Deferred taxes on income and expenses recognized
directly in equity – 0.5 0.0
Other changes 0.0 0.0
Total income and expense recognized in equity – 10.4 12.4
Total income and expenses for the period 36.7 53.0
thereof shareholder of FUCHS PETROLUB AG 36.4 52.8
thereof minority interests 0.3 0.2
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CONSOLIDATED BAL ANC E SHEET
in Z million March 31, 2011 Dec. 31, 2010
Assets
Intangible assets 118.8 123.2
Property, plant and equipment 198.3 201.2
Investments accounted for using the equity method 26.8 6.8
Other fi nancial assets 4.3 5.7
Deferred tax assets 21.1 21.9
Long-term assets 369.3 358.8
Inventories 204.0 187.2
Trade receivables 249.0 221.4
Tax receivables 2.4 2.3
Other receivables and other assets 27.1 32.4
Cash and cash equivalents 97.2 92.1
Short-term assets 579.7 535.4
Total assets 949.0 894.2
Equity and liabilities
Subscribed capital 71.0 71.0
Group reserves 463.0 302.6
Group profi ts 46.8 170.7
FUCHS PETROLUB Group capital 580.8 544.3
Minority interest 1.4 1.6
Shareholders' equity 582.2 545.9
Pension provisions 70.6 74.4
Other provisions 6.5 6.6
Deferred tax liabilities 15.6 16.1
Financial liabilities 0.1 0.1
Other liabilities 3.8 2.6
Long-term liabilities 96.6 99.8
Trade payables 134.0 114.5
Provisions 51.4 56.2
Tax liabilities 33.8 27.3
Financial liabilities 16.3 19.6
Other liabilities 34.7 30.9
Short-term liabilities 270.2 248.5
Total equity and liabilities 949.0 894.2
STATEM ENT OF C HANGES IN SHAREHOLDERS´ EQUIT Y
in Z millionOutstanding shares (units)
Subscribed capital AG
Capital reserves AG
As at December 31, 2009 23,660,000 71.0 94.6
Dividend payments
Profi t after tax 1. 1.– 31. 3. 2010
Change in income and expenses recognized
directly in equity
Changes in scope of consolidation
and other changes
As at March 31, 2010 23,660,000 71.0 94.6
As at December 31, 2010 23,660,000 71.0 94.6
Dividend payments
Profi t after tax 1. 1.– 31. 3. 2011
Change in income and expenses recognized
directly in equity
Changes in scope of consolidation
and other changes
As at March 31, 2011 23,660,000 71.0 94.6
1 Actuarial gains / losses after tax from defi ned benefi t plans and similar obligations.
2 The other changes concern the reserves for foreign currency translation of the Group.
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Equity capital generated
in the Group
Other comprehensive
income 2
FUCHS PETROLUB
Group CapitalMinority interest
Shareholders’ equity
241.7 – 15.8 391.5 1.4 392.9
0.0 – 0.3 – 0.3
40.4 40.4 0.2 40.6
12.4 12.4 12.4
0.0 0.0
282.1 – 3.4 444.3 1.3 445.6
371.0 7.7 544.3 1.6 545.9
0.0 – 0.4 – 0.4
46.8 46.8 0.3 47.1
1.2 1 – 11.6 – 10.4 – 10.4
0.1 0.1 – 0.1 0.0
419.1 – 3.9 580.8 1.4 582.2
STATEM ENT OF C ASH FLOWS
in Z million March 31, 2011 Dec. 31, 2010
Profi t after tax 47.1 40.6
Depreciation and amortization of long-term assets 6.9 5.1
Change in long-term provisions – 1.3 – 0.5
Change in deferred taxes – 0.3 – 0.4
Non cash income from investments accounted for using the equity method – 1.0 – 2.1
Gross cash fl ow 51.4 42.7
Change in inventories – 23.6 – 8.2
Change in trade receivables – 40.6 – 32.4
Change in other assets – 2.6 – 7.6
Change in trade payables 24.7 15.7
Change in other liabilities (excluding fi nancial liabilities) 8.0 10.3
Net gain / loss on disposal of long-term assets 0.0 0.0
Cash fl ow from operating activities 17.3 20.5
Investments in long-term assets – 6.5 – 6.9
Acquisition of subsidiaries and other business units 0.0 0.0
Disposal of subsidiaries and other business units 0.0 0.0
Proceeds from the disposal of long-term assets 1.5 0.1
Dividends received 0.0 0.0
Cash fl ow from investing activities – 5.0 – 6.8
Free cash fl ow 12.3 13.7
Dividends paid – 0.4 – 0.3
Changes in bank and leasing commitments – 2.5 1.1
Effects on cash from changes in scope of consolidation – 6.0 0.0
Cash fl ow from fi nancing activities – 8.9 0.8
Cash and cash equivalents at the end of the previous period 92.1 89.9
Cash fl ow from operating activities 17.3 20.5
Cash fl ow from investing activities – 5.0 – 6.8
Cash fl ow from fi nancing activities – 8.9 0.8
Effect of currency translations 1.7 0.8
Cash and cash equivalents at the end of the period 1 97.2 105.2
Details of the acquisition and disposal of subsidiaries and other
business units (in € million)
Total of all purchase prices 0.0 0.0
Total of acquired cash and cash equivalents 0.0 0.0
Balance of acquired net assets 0.0 0.0
Total of all sale prices 0.0 0.0
Total of sold cash and cash equivalents 0.0 0.0
Total of sold net assets 0.0 0.0
1 Cash and cash equivalents comprise total liquid funds of the Group.
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21
SEGM ENTS
in Z million Europe
Asia-Pacifi c,Africa
North and South
America
Total for operating
companies
Holding-companies
incl. con-solidation
FUCHS PETROLUB
Group
First quarter 2011
Sales revenue by
company location 249.8 102.1 68.9 420.8 – 11.8 409.0
EBIT before income
from participations 34.8 17.1 15.5 67.4 – 0.8 66.6
in % of sales 13.9 16.7 22.5 16.0 16.3
Income from participations – 1.0 – 1.0 1.0
Segment earnings (EBIT) 34.8 18.1 15.5 68.4 – 0.8 67.6
First quarter 2010
Sales revenue by
company location 203.6 83.7 53.4 340.7 – 10.3 330.4
EBIT before income
from participations 31.7 15.1 11.7 58.5 – 1.9 56.6
in % of sales 15.6 18.0 21.9 17.2 17.1
Income from participations – 2.1 – 2.1 2.1
Segment earnings (EBIT) 31.7 17.2 11.7 60.6 – 1.9 58.7
NOTES TO THE INTERIM CONSOLIDATED F INANCIAL STATEM ENTS
The interim consolidated fi nancial statements of FUCHS PETROLUB AG, Mannheim, have been prepared in accordance with the principles of the International Financial Reporting Standards (IFRS), taking into account the standards and interpretations laid down in the guidelines of the International Accounting Standards Board (IASB), London – to be applied within the EU and valid on the date of report. The accounting and valuation principles, together with the calculation methods, remained unchanged from the consolidated fi nancial statements for 2010; we therefore refer to the notes to the consolidated fi nancial state-ments made there.
The interim consolidated fi nancial statements and the interim management report were not subject to examination by the auditor.
Changes in the scope of consolidation and expansion of the income statement structure
With effect from January 1, 2011, two companies in the Asia-Pacifi c, Africa region that were previously consolidated on a pro rata basis are now accounted for using the equity method. The comparability of the Group’s balance sheet and income statement to the previous year is not signifi cantly affected by this change. Compared to the 2010 consolidated fi nancial state-ments, this leads to a € 3.3 million reduction in the balance sheet total. The sales revenues of these companies were € 8.8 million in the fi rst quarter of 2010.
At the same time, disclosures in the income statement were amended in such a way that earn-ings before interest, tax and income from participations is stated in addition to the Group’s earnings before interest and tax (EBIT). When comparing this new KPI in relation to sales rev-enues, only those amounts generated from the fully or proportionately consolidated compa-nies are taken into account in the relative value, both for income and sales revenues. EBIT also contains income from participations. The sales revenues derived from income from participa-tions are not included in Group sales revenues.
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Exchange rate development
The exchange rates with a signifi cant infl uence on the consolidated fi nancial statement have moved against the euro as follows:
Closing rate (1 €) March 31, 2011 Dec. 31, 2010
Change inforeign currency
in %
US dollar 1.410 1.325 – 6.0
British pound 0.879 0.857 – 2.5
Chinese renminbi yuan 9.263 8.763 – 5.4
Australian dollar 1.368 1.304 – 4.7
South African rand 9.654 8.813 – 8.7
Polish zloty 4.001 3.972 – 0.7
Brazilian real 2.321 2.214 – 4.6
Average annual exchange rate (1 €)First quarter
of 2011First quarter
of 2010
Change inforeign currency
in %
US dollar 1.367 1.385 + 1.3
British pound 0.854 0.888 + 4.0
Chinese renminbi yuan 9.007 9.468 + 5.1
Australian dollar 1.360 1.535 + 12.9
South African rand 9.590 10.443 + 8.9
Polish zloty 3.954 4.003 + 1.2
Brazilian real 2.285 2.507 + 9.7
Events after the balance sheet date
With a purchase agreement dated April 6, 2011, the minority interests (15 %) in WISURA MINERALÖLWERK GOLDGRABE & SCHEFT GMBH & CO. were acquired by FUCHS PETROLUB AG. The company was already included in the consolidated fi nancial statements of FUCHS PETROLUB AG by way of full consolidation.
24
May 4 Interim report for the fi rst quarter of 2011
Press conference call
Analyst conference call
May 11 Annual General Meeting, Mannheim
May 12 Information event for Swiss shareholders, Zurich
August 3 Interim report for the fi rst six months and second quarter of 2011
First-half press conference, Mannheim
Analyst conference call
November 3 Interim report for the fi rst nine months and third quarter of 2011
Press conference call
Analyst conference call
FINANCIAL CALENDAR
DATES 2011
25
DISCL AIMER
This quarterly report contains statements about future developments that are based on assumptions and estimates by the management of FUCHS PETROLUB AG. Even if the man-agement is of the opinion that these assumptions and estimates are accurate, future actual developments and future actual results may differ signifi cantly from these assumptions and estimates due to a variety of factors. These factors can include changes in the overall eco-nomic climate, changes to exchange rates and interest rates, and changes in the lubricants industry. FUCHS PETROLUB AG provides no guarantee that future developments and the results actually achieved in the future will correlate with the assumptions and estimates set out in this quarterly report and assumes no liability for such.
This interim report is also available in German.
Both language versions are accessible via the
internet.
FUCHS PETROLUB AG
Investor Relations
Friesenheimer Straße 17
68169 Mannheim, Germany
Telephone 0049-(0)621-3802-1105
Fax 0049-(0)621-3802-7274
www.fuchs-oil.com
E-Mail: ir @fuchs-oil.de